look news india
Mumbai: Foreign institutional investors (FIIs) continued to sell shares of financial services companies in February after January, anticipating that a slowdown in credit demand in the country's banking sector and a struggle to secure deposits will further impact banks' margins. But there may be pressure.
After selling stocks worth Rs 30,000 crore in January, foreign investors sold bank stocks worth Rs 7,536 crore in the first fortnight of the current month, the data showed.
Non-banking financial companies (NBFCs) are also under pressure as they have to depend on banks for their financial needs.
Apart from financial services sector stocks, FIIs are selling construction, telecom, FMCG, power, metal stocks, while there has been net investment in healthcare, IT, auto.
Foreign investors sold $3.50 billion in the Indian stock market in the current calendar year, but the market did not see much of a decline as domestic institutional investors absorbed the selling.
An analyst said FIIs will soon become active in the Indian market as there are risks associated with Chinese equities.
According to estimates, the third quarter of the current financial year has seen outflows from India due to weak earnings of Indian companies. Foreign investors have become cautious after seeing earnings not in line with valuations.
Heavy selling by FIIs has been seen in Indian companies after the results of HDFC Bank.
